You are considering a project with an initial cash outlay of $80,000 and expected free cash flows

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You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent.

A. What is the project’s payback period?

B. What is the project’s NPV?

C. What is the project’s PI?

D. What is the project’s IRR?

Related Book For answer-question

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: Aug 02, 2018 01:42 AM

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You are considering a project with an initial cash outlay of $80,000 and expected free cash flows

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Expert Answer:

A Payback period 8000020000 4 years B NPV 80000 2... View the full answer

Foundations of Finance The Logic and Practice of Financial Management

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